WHAT IS WEB3?
Here is a simple guide with analogies and everyday Examples.
Imagine you’re trying to explain the internet to someone who’s only ever used a typewriter. That’s the challenge of explaining Web3 to someone new to the crypto world.
Web3 is a big, exciting idea, but it can feel overwhelming with all the jargon like “blockchain,” “decentralization,” or “smart contracts.” Don’t worry—I’ll break it down using simple words, relatable analogies, and examples from everyday life, like shopping at a market or sending a letter.
My goal is to make Web3 feel as familiar as your neighborhood corner store. Let’s dive in and take this step by step, aiming for clear and beginner-friendly explanation.
What is Web3?
Web3 is the next evolution of the internet—a new way of using and interacting with the digital world. To understand Web3, let’s first look at how the internet has changed over time, using a simple analogy: think of the internet like a library.
1. Web1 (The Read-Only Library, 1990s–Early 2000s)
Back in the early days, the internet was like a library where you could only read books. Websites were static pages, like posters on a wall. You could visit a site to read news or check a company’s info, but you couldn’t interact much.
For example, if you wanted to buy something, you’d have to call the store or mail a check. It was a one-way street—creators put stuff online, and users just looked at it.
2. Web2 (The Interactive Library, Mid-2000s–Now)
Then there came Web2, the internet we use today. It’s like a library where you can not only read books but also write comments in them, chat with friends, and share your own stories. Think of platforms like this Facebook, YouTube, or Instagram. You can post photos, like posts, and shop online.
But here’s the catch: big companies like Google, Amazon, or Meta own the library. They decide what books (content) get promoted, who sees what, and they keep your data (like your reading habits) to sell ads. You’re a user, but you don’t own or control much.
3. Web3 (The Community-Owned Library, Emerging Now)
Web3 is like a library owned and run by everyone who uses it. Instead of one company controlling everything, the community decides the rules, and you have more power over your data, money, and creations.
It’s built on technologies like Blockchain, which acts like a public ledger that everyone can see and trust.
In Web3, you can own digital things (like art or music), interact without middlemen (like banks or apps), and have a say in how the library works.
Analogy: Web3 is Like a Farmers’ Market
To make Web3 easier to grasp, let’s use an analogy of a farmers’ market, something familiar in many communities like Lade where I came from. Picture this:
-Web2 is a Supermarket:
When you shop at a big supermarket, you buy fruits, veggies, or clothes, but the store controls everything. They decide which farmers products they buy on their shelves, take a big cut of the profits, and track your purchases to show you ads later. You’re a customer, not a partner, and you have no say in how the store runs.
Web3 is a Farmers’ Market:
In a farmers’ market, farmers sell directly to you. There’s no big store taking a huge cut or controlling who gets to sell. Each farmer has their own stall, and you pay them directly. Everyone follows shared rules (like keeping the market clean), and the market is run by the community, not a single boss. Plus, you can even become a farmer yourself and sell your own goods.
Web3 is like that farmers’ market for the internet. It’s about giving power back to users, creators, and communities, using tools like blockchain to make it fair, transparent, and secure.
KEY IDEAS BEHIND WEB3
Now, let’s break down the main pieces of Web3 using simple explanations and analogies. Don’t worry if some terms sound technical—I’ll make them as clear as explaining how to ride a bicycle.
1. Decentralization: No Single Boss
In Web2, big companies like Amazon or TikTok are the bosses of the internet. They own the servers (computers) that store your data and decide what you see. If they shut down or change the rules, you’re stuck.
Web3 is decentralized, meaning no one person or company is in charge. Instead, the internet runs on thousands of computers (called nodes) around the world, all working together. Think of it like a village where everyone shares the work of keeping the community running, instead of one mayor making all the decisions.
Analogy: A Community Cookbook
In Web2, a big publisher like a cookbook company decides which recipes get published, takes most of the profits, and might even change your recipe without asking.
In Web3, the community creates a shared cookbook. Everyone can add recipes, and no single publisher controls it. The cookbook is stored in many homes, so even if one house burns down, the recipes are safe.
Example: Imagine you’re a musician. In Web2, you upload your song to Spotify, but they take a big cut of your earnings and control who hears it. In Web3, you could sell your music directly to fans on a decentralized platform, keeping more money and owning your work.
2. Blockchain: The Public Ledger
The backbone of Web3 is blockchain, a technology that acts like a public notebook everyone can see but no one can erase. It records transactions (like buying or selling) in a way that’s transparent and secure.
How does Blockchain works?
- A blockchain is a chain of “blocks” (like pages in a notebook).
- Each block contains a list of transactions (e.g., “Abdul sent Amina $10”).
- Once a block is full, it’s locked and linked to the next block, forming a chain.
- Copies of this notebook are stored on thousands of computers worldwide, so everyone agrees on what’s written.
Analogy: A Village Noticeboard
Imagine a village where every time someone buys or sells something, they write it on a public noticeboard. Everyone in the village can see it, and once it’s written, it can’t be changed. If someone tries to cheat, the whole village will notice because their noticeboard won’t match everyone else’s. Blockchain is like that noticeboard, keeping everything honest and open.
Example: Let’s say you buy a digital artwork on(NFT) Web3. The blockchain records that you own it, like a receipt that everyone can see. No one can claim it’s theirs, and you can prove it’s yours without needing a middleman like a bank or gallery.
3. Cryptocurrencies: Digital Money Without Banks
In Web3, you often use cryptocurrencies like Bitcoin or Ethereum to pay for things, instead of dollars or naira. These are digital currencies that live on the blockchain, so no bank or government controls them.
Analogy: Tokens at a Festival
Think of a music festival where you buy tokens to pay for food, drinks, or games. The festival organizers don’t control how you use the tokens—you can trade them with friends or spend them anywhere at the festival. Cryptocurrencies are like those tokens, but for the internet. You can send them to anyone, anywhere, without a bank taking a fee or delaying the transfer.
Example: Imagine you’re in Nigeria and want to send money to a friend in Ghana.
In Web2, you’d use a bank or app like PayPal, which charges fees and takes days.
In Web3, you could send cryptocurrency like Ethereum instantly, with lower fees, directly to your friend’s digital wallet.
4. Digital Wallets: Your Personal Safe
To use Web3, you need a digital wallet( Trust wallet, phantom wallet), a secure app or device that holds your cryptocurrencies and digital items. It’s like a bank account, but you control it completely.
Analogy: A Personal Safe
In Web2, your money is in a bank, and they control access. If they freeze your account, you’re in trouble.
A digital wallet is like a safe in your house. You keep your money (crypto) and keys (passwords) there, and no one else can touch it unless you share the key.
Example: You download a wallet app like MetaMask on your phone. You use it to buy a digital concert ticket on a Web3 platform. The ticket is stored in your wallet, and you can show it at the event or even sell it to someone else, all without a middleman.
5. Smart Contracts: Automatic Agreements
A smart contract is a piece of code on the blockchain that automatically does something when certain conditions are met. It’s like a vending machine for agreements.
Analogy: A Vending Machine
When you put money in a vending machine and press a button, you get a soda. No one needs to check if you paid—the machine handles it automatically. A smart contract works the same way. For example, if you send $10 to a smart contract, it might automatically send you a digital book.
Example: Suppose you’re renting an apartment in Web3. A smart contract could hold your rent payment and only release it to the landlord if you get the keys. If the landlord doesn’t deliver, the contract returns your money. No need for a lawyer or bank—just code that enforces the deal. Web3 sweet aswear 😂
6. NFTs: Unique Digital Collectibles
NFTs (Non-Fungible Tokens) are digital items you can own, like art, music, or game items, recorded on the blockchain. “Non-fungible” means each one is unique, like a one-of-a-kind trading card.
Analogy: A Signed Football Jersey
In the real world, a football jersey signed by your favorite player is special because it’s unique. An NFT is like that, but digital. You can buy, sell, or show off your NFT, and the blockchain proves it’s yours.
Example: An artist in your city creates a digital painting and sells it as an NFT. You buy it, and it’s stored in your digital wallet. You can display it in a virtual gallery, sell it later, or even use it in a game. The artist gets paid directly, and you own something unique.
7. DAOs: Community-Run Organizations
A DAO (Decentralized Autonomous Organization) is like a club where everyone has a vote, and decisions are made using smart contracts. It’s a way to run groups without a single leader.
Analogy: A Neighborhood Committee
Imagine your neighborhood forms a committee to decide how to spend money on a new park. Everyone gets a vote, and the rules are written so no one can cheat. A DAO is like that, but online, using blockchain to keep things fair.
Example: A group of gamers creates a DAO to manage a virtual world they built. Members vote on new features, like adding a dragon or a castle, and the DAO’s smart contracts automatically use the group’s funds to pay developers.
Why Web3 Matters: Benefits for Everyday People
Now that we’ve covered the basics, let’s talk about why Web3 is exciting and how it could change your life. Here are some benefits, explained with examples:
1. You Own Your Data
In Web2, companies like Instagram own your photos and info. In Web3, you control your data. For example, you could use a Web3 social media platform where you decide who sees your posts and even get paid if someone uses your content.
2. No Middlemen, Lower Costs
Web3 cuts out middlemen like banks or apps, saving money. For instance, a farmer could sell crops directly to buyers worldwide using a Web3 marketplace, without a big company taking a cut.
3. More Opportunities for Creators
Artists, musicians, or writers can sell their work directly to fans as NFTs or through smart contracts, keeping more of the profits. Imagine a local poet selling digital poems as NFTs to readers globally.
4. Financial Access for Everyone
In many places, people don’t have bank accounts but have phones. Web3 lets them use cryptocurrencies and digital wallets to save, spend, or invest, like a global bank in their pocket.
5. Transparency and Trust
Since blockchain is public, you can trust transactions without needing a middleman. For example, a charity organisation could use a Web3 platform to show exactly how donations are spent, so you know your money helps.
CHALLENGES OF WEB3
Web3 isn’t perfect, and it’s still growing. Here are some challenges, explained simply:
1. It’s Complicated to Use
Right now, Web3 tools like wallets or platforms can be tricky, like learning to drive a car for the first time. But they’re getting easier as more people build user-friendly apps.
2. Scams and Risks
Just like a busy market can have pickpockets, Web3 has scammers. Always double-check before sending crypto or clicking links, and keep your wallet’s keys safe.
3. Environmental Concerns
Some blockchains, like early versions of Ethereum, use a lot of energy. But newer systems are more eco-friendly, like switching from a gas-guzzling car to an electric one😂.
4. Not Fully Adopted Yet
Web3 is like a new phone model—not everyone’s using it yet. Many people and businesses still rely on Web2, so it’ll take time for Web3 to become mainstream.
REAL-LIFE EXAMPLES OF WEB3 IN ACTION
To make Web3 feel real, here are some examples of how it’s being used today, tied to everyday scenarios:
1. Music and Art (NFTs)
A musician in Lagos creates a song and sells it as an NFT. Fans buy it, and some NFTs include perks like a virtual meet-and-greet. The artist keeps most of the money, unlike on Spotify.
2. Gaming (Play-to-Earn)
In games like Axie Infinity, players earn cryptocurrencies by playing, like getting paid to play a board game. In the Philippines, some people even make a living this way.
3. Finance (DeFi)
DeFi (Decentralized Finance) platforms let you lend or borrow money without a bank. Imagine lending $100 to a farmer through a Web3 app and earning interest, all secured by a smart contract.
4. Social Media (Decentralized Platforms)
Platforms like Lens Protocol let you post content and own your followers, unlike Twitter, where the platform controls your account. If you move to another Web3 social app, your followers come with you.
5. Supply Chains
A coffee company uses blockchain to track beans from a farm to your cup. You can scan a QR code to see exactly where your coffee came from, ensuring fair trade.
HOW TO GET STARTED WITH WEB3
If you’re excited about Web3, here’s how to dip your toes in, using simple steps:
1. Learn the Basics
Watch YouTube videos or read beginner guides (like this one!) to understand terms like blockchain or NFTs. It’s like learning the rules of a new game.
2. Get a Digital Wallet
Download a wallet like MetaMask or Trust Wallet. It’s free and takes a few minutes. Write down your recovery phrase (like a master key) and keep it safe.
3. Buy Some Cryptocurrency
Start with a small amount, like $10 of Ethereum, through a trusted exchange like Binance or Bybit. It’s like buying tokens for a festival.
4. Explore Web3 Apps
Try a Web3 platform, like OpenSea for NFTs or Uniswap for trading crypto. It’s like visiting a new market to see what’s for sale.
5. Join a Community
Follow Web3 creators on Twitter or join Discord groups to learn from others. It’s like joining a club where people share tips.
WEB3 AND YOUR FUTURE
Web3 is more than just tech—it’s a new way of thinking about the internet, where you have more control, ownership, and opportunities. Imagine a world where:
- You buy land in a virtual game and build a shop, earning real money.
- You vote on how a global charity spends its funds, with every penny tracked.
- You create a digital comic and sell it to fans worldwide, without a publisher.
This is the promise of Web3. It’s like moving from a rented apartment (Web2) to a house you own (Web3), where you make the rules and keep the keys.
Wrapping up, Web3 is a Journey We’ve covered a lot, from decentralization to NFTs, using analogies like farmers’ markets, village noticeboards, and vending machines. Web3 is exciting because it gives power back to people like you, but it’s also new and evolving. Think of it like the early days of the internet—clunky at first, but full of potential.
As you explore Web3, take it slow, ask questions, and have fun. It’s like learning to cook a new dish: start with simple recipes, experiment, and soon you’ll be creating your own masterpieces. If you have more questions or want to dive deeper into any part of Web3, just let me know—I’m here to help!
I hope this explanation makes Web3 feel clear and approachable! If you’d like me to tweak anything or add more examples, just say drop it in the comment section.
I am AbdulofBlockchain crypto enthusiast technical analyst Trader and investor community manager II at Blockchain Northwest Nigeria, CEO Lade Blockchain & Nupe crypto community.